11881 Cherry Creek, a fixer in Nevada City, Listed for $194,900

Bank owned fixers like this come along only once or twice per year so there are no comparable sales for similar homes. The best way to calculate value is to assume the home has no value because the cost of repairing it will be greater than the cost of tearing it down and building a new home. So, what is the land and infrastructure worth? There are some comparable land sales this year. Lots with a bit of infrastructure, maybe $90,000 to $100,000. I think I would value this home in that $100,000 price range. So why did the bank list it for nearly twice that?
Without any comparable homes that have sold, and with the home cleaned up by the bank, they must be thinking some contractor or maybe someone with very low standards will buy this place and live in it. In that case, then yes, that buyer might pay $190,000 for this? I am just saying, I personally think the value is closer to $100,000. Time will tell if the bank asset manager or me is better at guessing what will happen to this home.

Author: gordon

Nevada County Resident since 1988. Painting and Decorating Contractor 1985-2003 Nevada County Realtor Since 2004 Member of the Nevada County Masters Club (top producing agent) Every Year Since 2004

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